No fast economic rebound for India
India's economy likely remained in its deepest slump for nine years in the quarter ending in June, but high inflation and polarized politics leave the country's leaders with limited scope to crank up growth.
Weak demand in the United States and Europe has hit exports of IT services and manufactured goods, but the heaviest toll on the economy is from overspending and the lack of reforms at home - a point made by ratings agencies Fitch and Standard & Poor's, who have threatened to downgrade India's sovereign debt to junk.
A poll of 38 economists produced a median forecast of 5.3 % year-on-year GDP growth for the April-June quarter, unchanged from January-March, which was the slowest growth rate since the same quarter in 2003.
(Sources: Financial Express, Livemint, IBNLive, Economic Times, Indiatimes)
Need to bring inflation down to 5%: RBI
The inflation continues to remain high and needs to be brought down to "more acceptable" levels of five per cent or less, Reserve Bank of India Governor D Subbarao had said, while noting that the challenge was to calibrate interest rates to control inflation and support economic growth at the same time.
The Reserve Bank is scheduled to review its monetary policy on September 17. India's economic growth slipped to 9-year low of 6.5 % in 2011-12. Prime Minister's economic advisory panel has pegged GDP growth for the current fiscal at 6.7 %. Industrial production recorded a dismal growth of 2.4 % in May.
(Sources: Business Standard, Hindu Business Line, Financial Express, Livemint, Wall Street Journal)
Maruti Suzuki bets big on diesel cars to increase market share
Maruti Suzuki India today said it is "examining" having more diesel engine capacity than it has currently planned in order to have an overall 40 % market share in the domestic passenger vehicle market.
For the period April-July this fiscal, MSI's share in the domestic passenger vehicle market stood at 38.61 % at 3,34,288 units, as per Society of Indian Automobile Manufacturers. In order to meet its requirements, the company is setting up a diesel engine plant at Gurgaon with an investment of $ 305 million.
(Sources: Economic Times, Hindu Business Line Zeenews, Times of India)
Government moves Cabinet note to ease local sourcing norms for single-brand retail
The government has moved a Cabinet note to substantially dilute the controversial local sourcing norms for foreign single-brand retailers that have cast a shadow over IKEA Group's $1.9-billion investment plans and discouraged foreign players, even after India allowed 100% foreign direct investment in the sector.
The changes proposed in the Cabinet note are in line with the assurances given by Commerce and Industry Minister Anand Sharma and his officials to foreign retail companies.
(Sources: Economic Times, Worldnews, Zeenews, Indiatimes, IBNLive)
Integrated farming pilot begins in 1,000 villages
The department of agriculture, government of Karnataka, has launched a pilot programme to promote integrated farming in about 1,000 villages across the state. The government has earmarked a financial assistance of $ 9 million for the programme in 2012-13.
Under this programme, the department of agriculture would provide select farmers in 1,000 villages a package of best farming practices, good quality planting material, seeds and training to grow crops. They will also be given training on different branches of agriculture like horticulture, animal husbandry, poultry, fisheries and agro-forestry.
(Sources: Business Standard, the Hindu, the Tribune, Zeenews, IBNLive)
Raghuram Rajan assumes charge as CEA today
Former International Monetary Fund chief economist Raghuram G Rajan, also known for predicting 2008 global financial crisis, is assuming charge as the chief economic advisor (CEA) on Wednesday. After Kaushik Basu’s term ended on July 31, the post has been lying vacant.
(Sources: Bloomberg, Business Standard, NDTV, Zeenews, IBNLive)
Gujarat govt allots land to Inbisco
Boosting further investment in the Sanand belt, the Gujarat government has now allotted land to Inbisco India Pvt. Ltd., the Indian arm of Indonesian food and confectionary player Mayora Group.
The company is planning to invest $ 180 million for setting up a food and confectionary manufacturing plant in Sanand GIDC. The company plans to commission the plant within a year from October 2012.
This will be Inbisco's second manufacturing plant after Hyderabad. According to Irawan Sutiono, project manager at Inbisco India, the company will be manufacturing products like biscuits, candy, wafers, noodles, chocolate paste, instant coffee and cereals at the plant.
(Sources: Business Standard, Times of India, Indiatimes)
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